Do not call 911, we can help you...
For a lot of people tax implications can only bring a strong headache. Fair enough!
For consumers, paying wireless taxes is much more straightforward, they are on the invoice and that’s it!
For businesses, they will pay both provincial and federal taxes on the invoice and then they will receive (recover) the federal portion of these paid taxes, but now it is the company’s responsibility to determine and pay the taxes owed to the individual provinces.
This is where we though we may help you! Not only that we care about our customers, we seriously know how complex the tax system can be. That is why we made this information guide to help you wrap your head around how tax recovery works in Canada and how it may affect how your company accounts for wireless service costs. In other word, to save the hell out of this mess.
Wireless is in a unique position in regards by which services are delivered to the end user and how those services are billed to corporations. Because of this, wireless has unique tax implications that companies should be aware of.
This information guide is designed to help, here is a snashot of what you'll find:
Who does this apply to?
What taxes are recoverable?
What is the 2 of 3 rule
More significantly, some changes to the QST system came into effect on January 1, 2013. These new measures are further to a tax coordination agreement entered into by the governments of Canada and Québec on March 28, 2012.
Our Canadian Tax Guide can definitely be handy but should you be interested in to simplify wireless tax accounting, We provide Telemanager, a Telecommunications and IT Cost management software and services that are tailored to comply with Canadian and US financial regulations. Telemanager implemented all of the changes of Quebec taxes in its reporting.
Learn more about Cimpl.